This is more good news. These visits on Trade issues should be no trouble under the various understandings reached with China when countries such as the US and New Zealand recognised the PRC. But these visits became less frequent, or were suspended in recent years because of the dreadful relations between Taiwan and China during Chen Shui-bian's rule. We hope that New Zealand resumes such visits as well. Taiwan is one of our top 10 markets.
Ever since the KMT came to power in May, one of the primary goals of the Ma administration has been to mend the Taiwan-US relations, which had deteriorated over the past years because of former President Chen Shui-bian’s capricious and provocative cross-Strait policies.
Now, the US government has shown its willingness to strengthen ties with Taiwan, though economically. It is reported that the US government has sent a message to President Ma Ying-jeou through the American Institute in Taiwan (AIT) stating that it wanted to restore the mutual visits of ministerial-level economic/trade officials between the two countries.
Yesterday, President Ma Ying-jeou convened a meeting to discuss the matter with top officials from the National Security Council, the Council of Agriculture, the Department of Health, and the Ministry of Economic Affairs.Taiwan and the US signed a Trade and Investment Framework Agreement in 1994, the purpose of which was to solve trade problems and strengthen economic cooperation between the two countries. The ministerial-level economic/trade officials had often visited each other’s countries before. However, such visits gradually came to a near halt during Chen Shui-bian’s eight-year rule.
“During the KMT rule, the US ministerial-level economic/trade officials paid visits to Taiwan many times. However, the Taiwan-US ties came to a standstill after the DPP came to power. In the last few years, the top economic/trade official to visit Taiwan was Kara Bhatia, then Deputy US Trade Representative,” said a senior Taiwan diplomat.
Showing posts with label Taiwan Watch. Show all posts
Showing posts with label Taiwan Watch. Show all posts
Nov 8, 2008
Positive Development In China-Taiwan Relations
The Hive has long advocated improved economic linkages between China and Taiwan as the best means to improved political and security relations.
We were therefore very pleased to read a snippet of good news on this front. We have been able to track down fuller details which we repeat below. Longer term we hope that China and Taiwan take fuller advantage of the fact that both are members of the WTO. There is much of an official naature that can be done under this cover.
China, Taiwan sign deals on closer economic ties
3 days ago
TAIPEI (AFP) — Taiwan and China Tuesday signed a range of deals aimed at bringing the two sides closer economically, after almost 60 years of hostilities that often took them to the brink of war.
Officials from the two sides were shown live on television signing four agreements that are potentially worth billions of dollars, after talks that marked a significant warming of ties between the former bitter enemies.
The two sides have agreed to introduce direct cargo shipping and postal services, to add passenger flights and to discuss food security in the wake of health problems caused by poisonous Chinese food imports.
Tourism cooperation was also part of the talks, which took place Tuesday morning in Taipei's Grand Hotel between Beijing's envoy Chen Yunlin, head of China's Association for Relations Across the Taiwan Strait, and Chiang Pin-kung, his local counterpart as head of the Strait Exchange Foundation.
Television footage showed the two men shaking hands as they held copies of the signed agreements bound in red silk brocade.
Chiang then presented Chen with a large framed painting with eight Chinese characters, in black on a gold background that read: "Peace agreement for a win-win situation."
Chen reciprocated with a crystal sculpture of a handshake, which he said symbolised peace and cooperation.
The two sides have agreed to treble direct passenger flights to 108 per week and expand services to a total of 21 Chinese cities, up from the current five.
The deals will introduce cargo flights, with up to 60 round trips per month crossing the 180-kilometre- (112-mile-) Taiwan Strait that separates the island from China.
Chiang told reporters after the signing ceremony that both sides were happy to have reached the agreements "as expected".
He said Taiwan's current government had completed negotiations on air and shipping links begun by the previous administration of the anti-China Democratic Progressive Party (DPP).
Direct air links would cut fuel costs for airlines by 40-50 percent, he said, adding: "It will greatly boost Taiwan's competitiveness."
Direct cargo links would cut shipping costs by 15-30 percent, he said, with the time of each journey shortened by up to 27 hours, depending on which Chinese port Taiwan's ship are going to.
Currently flights between the two territories have to pass through foreign airspace. Ships have to traverse another country's waters.
They also agreed to cooperate on food safety in the wake of a number of international scandals involving toxic Chinese food.
The issue has caused widespread alarm on the island, after a woman and three children were poisoned by Chinese milk, and the industrial chemical melamine was found in dairy products from China, all of which have since been banned.
The agreements, which analysts have said could be worth billions of dollars over the long term, mark a step forward in the relationship between the two sides.
Beijing formally still claims sovereignty over the island, which split from China when the nationalist Kuomintang lost the civil war and fled to Taiwan. The Chinese government has vowed to retake the island, by force if necessary.
The KMT government of President Ma Ying-jeou won office earlier this year on a platform of closer ties with China in order to improve the island's sluggish economy.
The policy has drawn widespread criticism in Taiwan , where many people fear that their island is being slowly drawn into a tight economic embrace by China, which will lead to an erosion of freedoms and lifestyle.
While Ma's election victory ended eight years of frosty relations across the Taiwan Strait when he beat the DPP's pro-independence Chen Shui-bian, his popularity has waned in the months leading up to this week's talks.
He has promised that he is not "selling out" Taiwan to China, but DPP supporters have said they fear closer economic ties will lead to an influx of Chinese who could take their jobs.
We were therefore very pleased to read a snippet of good news on this front. We have been able to track down fuller details which we repeat below. Longer term we hope that China and Taiwan take fuller advantage of the fact that both are members of the WTO. There is much of an official naature that can be done under this cover.
China, Taiwan sign deals on closer economic ties
3 days ago
TAIPEI (AFP) — Taiwan and China Tuesday signed a range of deals aimed at bringing the two sides closer economically, after almost 60 years of hostilities that often took them to the brink of war.
Officials from the two sides were shown live on television signing four agreements that are potentially worth billions of dollars, after talks that marked a significant warming of ties between the former bitter enemies.
The two sides have agreed to introduce direct cargo shipping and postal services, to add passenger flights and to discuss food security in the wake of health problems caused by poisonous Chinese food imports.
Tourism cooperation was also part of the talks, which took place Tuesday morning in Taipei's Grand Hotel between Beijing's envoy Chen Yunlin, head of China's Association for Relations Across the Taiwan Strait, and Chiang Pin-kung, his local counterpart as head of the Strait Exchange Foundation.
Television footage showed the two men shaking hands as they held copies of the signed agreements bound in red silk brocade.
Chiang then presented Chen with a large framed painting with eight Chinese characters, in black on a gold background that read: "Peace agreement for a win-win situation."
Chen reciprocated with a crystal sculpture of a handshake, which he said symbolised peace and cooperation.
The two sides have agreed to treble direct passenger flights to 108 per week and expand services to a total of 21 Chinese cities, up from the current five.
The deals will introduce cargo flights, with up to 60 round trips per month crossing the 180-kilometre- (112-mile-) Taiwan Strait that separates the island from China.
Chiang told reporters after the signing ceremony that both sides were happy to have reached the agreements "as expected".
He said Taiwan's current government had completed negotiations on air and shipping links begun by the previous administration of the anti-China Democratic Progressive Party (DPP).
Direct air links would cut fuel costs for airlines by 40-50 percent, he said, adding: "It will greatly boost Taiwan's competitiveness."
Direct cargo links would cut shipping costs by 15-30 percent, he said, with the time of each journey shortened by up to 27 hours, depending on which Chinese port Taiwan's ship are going to.
Currently flights between the two territories have to pass through foreign airspace. Ships have to traverse another country's waters.
They also agreed to cooperate on food safety in the wake of a number of international scandals involving toxic Chinese food.
The issue has caused widespread alarm on the island, after a woman and three children were poisoned by Chinese milk, and the industrial chemical melamine was found in dairy products from China, all of which have since been banned.
The agreements, which analysts have said could be worth billions of dollars over the long term, mark a step forward in the relationship between the two sides.
Beijing formally still claims sovereignty over the island, which split from China when the nationalist Kuomintang lost the civil war and fled to Taiwan. The Chinese government has vowed to retake the island, by force if necessary.
The KMT government of President Ma Ying-jeou won office earlier this year on a platform of closer ties with China in order to improve the island's sluggish economy.
The policy has drawn widespread criticism in Taiwan , where many people fear that their island is being slowly drawn into a tight economic embrace by China, which will lead to an erosion of freedoms and lifestyle.
While Ma's election victory ended eight years of frosty relations across the Taiwan Strait when he beat the DPP's pro-independence Chen Shui-bian, his popularity has waned in the months leading up to this week's talks.
He has promised that he is not "selling out" Taiwan to China, but DPP supporters have said they fear closer economic ties will lead to an influx of Chinese who could take their jobs.
Jul 20, 2008
Should US Resume Arms Sales To Democratic China?
A number of former Bush administration officials think so - from today's Wall Street Journal
In 2001, President Bush made a bold and principled decision to offer Taiwan a range of military equipment for its security. In 2008, as he prepares to leave office, the president seems to have reneged on that commitment.
On Wednesday, Adm. Timothy Keating, commander of the U.S. Pacific Command, confirmed that the administration has frozen arms sales to the island nation, acknowledging Beijing's displeasure by way of explanation. "The Chinese have made clear to me their concern over any arms sales to Taiwan," he said at a Heritage Foundation forum in Washington. However, the decision to freeze arms sales is mistaken and dangerous.
The People's Republic of China has been expanding its military capabilities at a rapid pace. Included in this impressive buildup are weapons directly intended for use against Taiwan: hundreds of short-range ballistic missiles, scores of new fighter bombers and several types of attack submarines. In accordance with the 1979 Taiwan Relations Act, the Bush administration originally proposed an arms package designed to improve Taiwan's capacity for self-defense. Included were Patriot 3 missile-defense systems, P3C antisubmarine warfare aircraft, Apache helicopters, Kidd-class destroyers, diesel submarines and a modern command, control and communications system.
While defense experts in Taipei and Washington debated the utility of some of these systems for Taiwan's defense, as a package they constituted a powerful signal of America's long-standing commitment to Taiwan's defense and contained important elements of a stronger Taiwanese deterrent against potential Chinese aggression. The offer made good on Mr. Bush's promise that the U.S. would "do whatever it takes" to defend Taiwan.
In addition to the arms package, Mr. Bush also altered policy to normalize security relations with Taiwan, permitting it to request additional weapons systems as its military identified new requirements. Taiwan subsequently asked for 66 F-16 aircraft to replace its aging fighter fleet.
Unfortunately, Taiwan's domestic politics prevented speedy action on elements of the original U.S. offer. While it purchased the Kidd-class destroyers, the P3C aircraft, some elements of a missile defense system and a new command and control system, much of the American package became hostage to partisan bickering in Taipei. After significant delay, last year Taiwan's legislature finally acted, appropriating the money required to purchase most of the rest of the items offered by the U.S. in 2001.
The Bush administration now appears unwilling to follow through on its side of the bargain.
Why the volte-face? Following its initial offer of assistance, the Bush administration came to regard former Taiwanese President Chen Shui-bian as a reckless provocateur, determined to push his self-governing island toward formal independence from Beijing despite the risk of war. Fearful that selling Mr. Chen arms would only embolden him, some administration officials were quietly thankful for the continuing turmoil and indecision in Taipei.
Whatever the validity of these concerns, they no longer apply. In May 2008, the Taiwanese people elected opposition leader Ma Ying-jeou to the presidency. Mr. Ma is dedicated to improving cross-straits ties and eschews Mr. Chen's inflammatory rhetoric. But, like his predecessor, he is committed to strengthening Taiwan's self-defense capabilities.
Since Sept. 11, 2001, the Bush administration has been anxious to avoid antagonizing Beijing and eager to win its support on a variety of issues, especially its continuing efforts to denuclearize North Korea. Though the extent to which China has actually been helpful is debatable, the administration has increasingly subordinated many aspects of its Asia policy to the overarching aim of not offending Beijing.
The policy of not offending China, no matter what the costs, does not serve U.S. interests in the Taiwan Straits. First, it undermines Mr. Ma's ability to deal with Beijing from a position of strength, and to that extent it undermines the common objective of peaceful reunification, should the Taiwanese desire it.
Denying Taiwan the minimal capabilities required to cope with China's massive military buildup also increases the burdens on U.S. forces if they should ever intervene in a future cross-straits confrontation.
Moreover, the administration overstates the damage arms sales to Taiwan will do to cross-strait relations and to the overall relationship between the U.S. and China, important as that is. Beijing presumes Washington would move forward with arms it promised to sell to Taiwan some seven years ago. And, after adding several hundred advanced fighters to its own fleet, Beijing has no military reason to complain about the sale of 66 F-16s to Taiwan. None of the elements in the U.S. arms package in any case seriously increases Taiwan's offensive capabilities -- which are inconsequential to begin with.
Meanwhile, time is running out. The funds Taipei has appropriated to buy arms from the U.S. will lapse by the end of the 2008 and become unavailable. The process of Congressional notification necessary to conclude the sale too is lengthy and requires immediate administration action.
The administration should therefore move urgently to supply Taiwan with the capabilities promised in defense against China's growing ballistic missile, air and naval threats. Leaving office without approving these sales would be a strategic failure with far-reaching implications.
At stake is not only the defense of a democratic friend, but the credibility of the Ma government. Also at stake are America's commitment to protect its long-term interests throughout the Asia-Pacific, and Mr. Bush's determination to defend freedom. Failure to act would also set a dangerous precedent. For the first time since its opening to China, the U.S. government would have sidestepped its obligation to assist Taiwan in hopes of appeasing Beijing. Now is the time to change policy and move forward: both principle and pragmatism demand it.
Mr. Blumenthal is a resident fellow at the American Enterprise Institute. Mr. Friedberg is professor of politics at Princeton. Mr. Tellis is a senior associate at the Carnegie Endowment for International Peace. Mr. Schriver is a partner at Armitage International. All served in Asia policy positions under George W. Bush.
In 2001, President Bush made a bold and principled decision to offer Taiwan a range of military equipment for its security. In 2008, as he prepares to leave office, the president seems to have reneged on that commitment.
On Wednesday, Adm. Timothy Keating, commander of the U.S. Pacific Command, confirmed that the administration has frozen arms sales to the island nation, acknowledging Beijing's displeasure by way of explanation. "The Chinese have made clear to me their concern over any arms sales to Taiwan," he said at a Heritage Foundation forum in Washington. However, the decision to freeze arms sales is mistaken and dangerous.
The People's Republic of China has been expanding its military capabilities at a rapid pace. Included in this impressive buildup are weapons directly intended for use against Taiwan: hundreds of short-range ballistic missiles, scores of new fighter bombers and several types of attack submarines. In accordance with the 1979 Taiwan Relations Act, the Bush administration originally proposed an arms package designed to improve Taiwan's capacity for self-defense. Included were Patriot 3 missile-defense systems, P3C antisubmarine warfare aircraft, Apache helicopters, Kidd-class destroyers, diesel submarines and a modern command, control and communications system.
While defense experts in Taipei and Washington debated the utility of some of these systems for Taiwan's defense, as a package they constituted a powerful signal of America's long-standing commitment to Taiwan's defense and contained important elements of a stronger Taiwanese deterrent against potential Chinese aggression. The offer made good on Mr. Bush's promise that the U.S. would "do whatever it takes" to defend Taiwan.
In addition to the arms package, Mr. Bush also altered policy to normalize security relations with Taiwan, permitting it to request additional weapons systems as its military identified new requirements. Taiwan subsequently asked for 66 F-16 aircraft to replace its aging fighter fleet.
Unfortunately, Taiwan's domestic politics prevented speedy action on elements of the original U.S. offer. While it purchased the Kidd-class destroyers, the P3C aircraft, some elements of a missile defense system and a new command and control system, much of the American package became hostage to partisan bickering in Taipei. After significant delay, last year Taiwan's legislature finally acted, appropriating the money required to purchase most of the rest of the items offered by the U.S. in 2001.
The Bush administration now appears unwilling to follow through on its side of the bargain.
Why the volte-face? Following its initial offer of assistance, the Bush administration came to regard former Taiwanese President Chen Shui-bian as a reckless provocateur, determined to push his self-governing island toward formal independence from Beijing despite the risk of war. Fearful that selling Mr. Chen arms would only embolden him, some administration officials were quietly thankful for the continuing turmoil and indecision in Taipei.
Whatever the validity of these concerns, they no longer apply. In May 2008, the Taiwanese people elected opposition leader Ma Ying-jeou to the presidency. Mr. Ma is dedicated to improving cross-straits ties and eschews Mr. Chen's inflammatory rhetoric. But, like his predecessor, he is committed to strengthening Taiwan's self-defense capabilities.
Since Sept. 11, 2001, the Bush administration has been anxious to avoid antagonizing Beijing and eager to win its support on a variety of issues, especially its continuing efforts to denuclearize North Korea. Though the extent to which China has actually been helpful is debatable, the administration has increasingly subordinated many aspects of its Asia policy to the overarching aim of not offending Beijing.
The policy of not offending China, no matter what the costs, does not serve U.S. interests in the Taiwan Straits. First, it undermines Mr. Ma's ability to deal with Beijing from a position of strength, and to that extent it undermines the common objective of peaceful reunification, should the Taiwanese desire it.
Denying Taiwan the minimal capabilities required to cope with China's massive military buildup also increases the burdens on U.S. forces if they should ever intervene in a future cross-straits confrontation.
Moreover, the administration overstates the damage arms sales to Taiwan will do to cross-strait relations and to the overall relationship between the U.S. and China, important as that is. Beijing presumes Washington would move forward with arms it promised to sell to Taiwan some seven years ago. And, after adding several hundred advanced fighters to its own fleet, Beijing has no military reason to complain about the sale of 66 F-16s to Taiwan. None of the elements in the U.S. arms package in any case seriously increases Taiwan's offensive capabilities -- which are inconsequential to begin with.
Meanwhile, time is running out. The funds Taipei has appropriated to buy arms from the U.S. will lapse by the end of the 2008 and become unavailable. The process of Congressional notification necessary to conclude the sale too is lengthy and requires immediate administration action.
The administration should therefore move urgently to supply Taiwan with the capabilities promised in defense against China's growing ballistic missile, air and naval threats. Leaving office without approving these sales would be a strategic failure with far-reaching implications.
At stake is not only the defense of a democratic friend, but the credibility of the Ma government. Also at stake are America's commitment to protect its long-term interests throughout the Asia-Pacific, and Mr. Bush's determination to defend freedom. Failure to act would also set a dangerous precedent. For the first time since its opening to China, the U.S. government would have sidestepped its obligation to assist Taiwan in hopes of appeasing Beijing. Now is the time to change policy and move forward: both principle and pragmatism demand it.
Mr. Blumenthal is a resident fellow at the American Enterprise Institute. Mr. Friedberg is professor of politics at Princeton. Mr. Tellis is a senior associate at the Carnegie Endowment for International Peace. Mr. Schriver is a partner at Armitage International. All served in Asia policy positions under George W. Bush.
Jul 3, 2008
Breakthrough In China Taiwan Relations
From today's Asian Wall Street Journal
The last time this happened, Harry Truman was in the White House and Mao Zedong and Chiang Kai-shek were the leaders of the two Chinas. Regular direct flights between China and Taiwan begin Friday, with a chartered plane carrying tourists to Taipei. The direct links had been in the works for more than a decade and were finally approved in a June 13 agreement.
In Taiwan, the direct flights are the first tangible sign of progress in cross-Strait relations since President Ma Ying-jeou took office in May. He swept to victory by nearly 17 percentage points on pledges to improve cross-Strait ties and fix the economy. Several recent liberalization measures, though modest on their own merits, are encouraging first signs that Mr. Ma is moving in the right direction on both fronts.
Another small step forward in cross-Strait ties is expanded currency convertibility between the yuan and the Taiwan dollar. Mainland visitors to Taiwan will now be able to convert small amounts of yuan to Taiwan dollars, a service approved for the benefit of tourists.
Just as encouraging, Taipei is now starting to adopt a more rational approach to cross-Strait investment. New rules released last week eliminate the requirement that foreign mutual funds prove they don't accept investment from mainland Chinese before investing in Taiwan's market. Taiwan mutual funds will have more scope to invest in the Hong Kong-listed shares of Chinese companies. The net result will be more opportunities for Taiwan investors, and perhaps more investment capital for Taiwan.
Not all of the credit for this progress belongs to Mr. Ma and his Kuomintang Party. His predecessor, Chen Shui-bian of the Democratic Progressive Party, pushed hard for cross-Strait flights, for example, only to encounter resistance from Beijing.
But other steps, like the investment liberalization, have been taken unilaterally. Now Mr. Ma's challenge will be to move the ball further forward. To name but one, he could lift the ban on Taiwan companies investing more than 40% of their net worth in China.
Mr. Ma has displayed his famous pragmatism with the latest reforms. Now what Taiwan needs is more of the same.
The last time this happened, Harry Truman was in the White House and Mao Zedong and Chiang Kai-shek were the leaders of the two Chinas. Regular direct flights between China and Taiwan begin Friday, with a chartered plane carrying tourists to Taipei. The direct links had been in the works for more than a decade and were finally approved in a June 13 agreement.
In Taiwan, the direct flights are the first tangible sign of progress in cross-Strait relations since President Ma Ying-jeou took office in May. He swept to victory by nearly 17 percentage points on pledges to improve cross-Strait ties and fix the economy. Several recent liberalization measures, though modest on their own merits, are encouraging first signs that Mr. Ma is moving in the right direction on both fronts.
Another small step forward in cross-Strait ties is expanded currency convertibility between the yuan and the Taiwan dollar. Mainland visitors to Taiwan will now be able to convert small amounts of yuan to Taiwan dollars, a service approved for the benefit of tourists.
Just as encouraging, Taipei is now starting to adopt a more rational approach to cross-Strait investment. New rules released last week eliminate the requirement that foreign mutual funds prove they don't accept investment from mainland Chinese before investing in Taiwan's market. Taiwan mutual funds will have more scope to invest in the Hong Kong-listed shares of Chinese companies. The net result will be more opportunities for Taiwan investors, and perhaps more investment capital for Taiwan.
Not all of the credit for this progress belongs to Mr. Ma and his Kuomintang Party. His predecessor, Chen Shui-bian of the Democratic Progressive Party, pushed hard for cross-Strait flights, for example, only to encounter resistance from Beijing.
But other steps, like the investment liberalization, have been taken unilaterally. Now Mr. Ma's challenge will be to move the ball further forward. To name but one, he could lift the ban on Taiwan companies investing more than 40% of their net worth in China.
Mr. Ma has displayed his famous pragmatism with the latest reforms. Now what Taiwan needs is more of the same.
Jun 19, 2008
Taiwan's China Policy
Taiwanese President Ma Ying-jeou has outlined his goals for the relationship with China.
Economic links first
President Ma Ying-jeou of Taiwan called on Wednesday for a rapid expansion of economic relations between Taiwan and mainland China over the next year or two that would go far beyond the weekend charter flights and increased tourism announced last Friday.
Mr. Ma said he wanted broad access to the mainland market for Taiwanese financial services businesses, an end to double taxation by government agencies in Taipei and Beijing and the removal of investment restrictions.
He also called for direct sea and air cargo links across the Taiwan Strait, regularly scheduled passenger flights, the drafting of common technical standards and the creation of a system to resolve commercial disagreements.
“I think if we could continue the current talks with them to achieve economic normalization, I’m sure the feeling of a peaceful environment will continue to grow, and this is exactly what we have in mind,” Mr. Ma said in his first interview with an American news organization since taking office on May 20. He spoke for an hour at the presidential palace on Wednesday afternoon.
International space and security second
Two other broad sets of issues will wait until his economic agenda is resolved, Mr. Ma said. These are Taiwan’s limited “international space,” in the sense that most of the outside world now recognizes Beijing instead of Taipei as the legitimate government of China, and security issues across the Taiwan Strait.
“I think that’s the order — first is economic normalization, and then international space and then the peace accord,” he said.
Economic agreements should also be easier to reach because officials in Beijing seem to have reached a consensus that they want such pacts, Mr. Ma said. No such consensus exists on the mainland regarding Taiwan’s international space or security issues, he added.
China has worked to block Taiwan from joining certain international bodies, like the World Health Organization, something Mr. Ma said he would like to reverse. In addition, only 23 countries still have diplomatic relations with Taiwan, while 171 recognize Beijing. The two sides have vied for friends with lavish offers of financial aid.
President Hu Jintao of China told a Taiwanese negotiator on Friday that he was certain that a way could be found to address this competition, Mr. Ma said, warning that he did not want to see any more allies lured away.
“The marginal utility of adding one country to that 171 list is getting less and less,” he said. “On the other hand, the 23 countries are very important to us as a source of dignity.”
Mr. Ma also repeated his demand that China remove the more than 1,000 short- and medium-range missiles that it has aimed at Taiwan. Their removal is needed before any peace talks can begin to end the legal state of hostility that has persisted since the end of the Chinese civil war in 1949, he said. China has threatened the use of force to achieve political reunification.
The Hive is firmly of the view that some means needs to be found to have Taiwan a full member of UN functional agencies such as the WHO. As SARS demonstrated, having Taiwan outside the system meant that the rest of the world became vulnerable. Of course, being outside the WHO tent wasn't too good for Taiwan's population either.
Economic links first
President Ma Ying-jeou of Taiwan called on Wednesday for a rapid expansion of economic relations between Taiwan and mainland China over the next year or two that would go far beyond the weekend charter flights and increased tourism announced last Friday.
Mr. Ma said he wanted broad access to the mainland market for Taiwanese financial services businesses, an end to double taxation by government agencies in Taipei and Beijing and the removal of investment restrictions.
He also called for direct sea and air cargo links across the Taiwan Strait, regularly scheduled passenger flights, the drafting of common technical standards and the creation of a system to resolve commercial disagreements.
“I think if we could continue the current talks with them to achieve economic normalization, I’m sure the feeling of a peaceful environment will continue to grow, and this is exactly what we have in mind,” Mr. Ma said in his first interview with an American news organization since taking office on May 20. He spoke for an hour at the presidential palace on Wednesday afternoon.
International space and security second
Two other broad sets of issues will wait until his economic agenda is resolved, Mr. Ma said. These are Taiwan’s limited “international space,” in the sense that most of the outside world now recognizes Beijing instead of Taipei as the legitimate government of China, and security issues across the Taiwan Strait.
“I think that’s the order — first is economic normalization, and then international space and then the peace accord,” he said.
Economic agreements should also be easier to reach because officials in Beijing seem to have reached a consensus that they want such pacts, Mr. Ma said. No such consensus exists on the mainland regarding Taiwan’s international space or security issues, he added.
China has worked to block Taiwan from joining certain international bodies, like the World Health Organization, something Mr. Ma said he would like to reverse. In addition, only 23 countries still have diplomatic relations with Taiwan, while 171 recognize Beijing. The two sides have vied for friends with lavish offers of financial aid.
President Hu Jintao of China told a Taiwanese negotiator on Friday that he was certain that a way could be found to address this competition, Mr. Ma said, warning that he did not want to see any more allies lured away.
“The marginal utility of adding one country to that 171 list is getting less and less,” he said. “On the other hand, the 23 countries are very important to us as a source of dignity.”
Mr. Ma also repeated his demand that China remove the more than 1,000 short- and medium-range missiles that it has aimed at Taiwan. Their removal is needed before any peace talks can begin to end the legal state of hostility that has persisted since the end of the Chinese civil war in 1949, he said. China has threatened the use of force to achieve political reunification.
The Hive is firmly of the view that some means needs to be found to have Taiwan a full member of UN functional agencies such as the WHO. As SARS demonstrated, having Taiwan outside the system meant that the rest of the world became vulnerable. Of course, being outside the WHO tent wasn't too good for Taiwan's population either.
Jun 14, 2008
Taiwan and China To Open Offices In Each Other's Territory
Talks between China and Taiwan have delivered more than anticipated. The agreement to open representative offices (to perform consular functions) in each other's territory is intriguing . It is also good to see an expansion in direct charter flights and increased tourism flows. These moves can only build confidence and increase economic integration. It should also create new commercial opportunities for New Zealand.
We think that China should suggest the negotiation of an economic partnership arrangement with Taiwan similar to those that have been negotiated between China, Hong Kong and Macao. Both China and Taiwan are separate customs territories under WTO law and the negotiation of such an agreement would have no implications for the sovereignty question.
We think that China should suggest the negotiation of an economic partnership arrangement with Taiwan similar to those that have been negotiated between China, Hong Kong and Macao. Both China and Taiwan are separate customs territories under WTO law and the negotiation of such an agreement would have no implications for the sovereignty question.
Jun 9, 2008
Direct Flights Between Taiwan And China
Historic talks between Taiwan and China are set to begin this week (on 11 June) on the establishment of direct airlinks between the two sides of the Strait. This will be great for both Taiwan and China, but bad news from Hong Kong and Macao. Direct flights and the opening of the Taiwan market to Chinese tourists are set to be a major stimulus to the Taiwan economy. This is good news for New Zealand also as Taiwan is New Zealand's eighth largest economic partner.
May 31, 2008
China-Taiwan Negotiations To Resume
Regular direct flights between Taiwan and China are moving closer to becoming a reality. We see that the two sides have agreed to negotiations beginning 11 June in Beijing. Direct flights will be a huge productivity gain to both sides and could be combined with a decision by Taiwan to open up its market to Chinese tourists. This will further boost the Taiwanese economy. We hope New Zealand exporters are thinking about how to exploit new opportunities that might be opened up by these developments. The most obvious opportunity would appear to be in the sale of food and beverages to the Taiwanese hospitality sector.
May 21, 2008
Where Is New Zealand's Statement Welcoming Taiwan's New President?
Dear readers
We are sure that our technical incompetence is to blame.
We can't find Winston Peters' statement defining the next stage of our relationship with our 8th largest export market. Taiwan's new President was sworn in yesterday. The US issued a statement straight away. But we can't find any statement from Winston Peters. Surely it must be somewhere?
If it exists we are sure it will say that we welcome the great example that Taiwan is setting as a democracy in the region.
We look forward to working with the new President to reduce tensions in Taiwan Strait.
We encourage the early establishment of direct air and sea links with the mainland.
We hope that Taiwan will immediately open itself to Chinese tourists.
We encourage Taiwan and China to establish a dialogue on other areas of economic integration asap.
We hope that Taiwan will continue its strong humanitarian support for the relief effort in Sichuan. If New Zealand can support this effort let us know.
Taiwan is the ancestral homeland of the Maori. New Zealand would like to continue to grow linkages with Taiwan's aboriginal peoples and with Taiwan on health, cultural and social issues specific to Taiwan's aboriginal population.
Well said Winston!!
Regards
The Hive
We are sure that our technical incompetence is to blame.
We can't find Winston Peters' statement defining the next stage of our relationship with our 8th largest export market. Taiwan's new President was sworn in yesterday. The US issued a statement straight away. But we can't find any statement from Winston Peters. Surely it must be somewhere?
If it exists we are sure it will say that we welcome the great example that Taiwan is setting as a democracy in the region.
We look forward to working with the new President to reduce tensions in Taiwan Strait.
We encourage the early establishment of direct air and sea links with the mainland.
We hope that Taiwan will immediately open itself to Chinese tourists.
We encourage Taiwan and China to establish a dialogue on other areas of economic integration asap.
We hope that Taiwan will continue its strong humanitarian support for the relief effort in Sichuan. If New Zealand can support this effort let us know.
Taiwan is the ancestral homeland of the Maori. New Zealand would like to continue to grow linkages with Taiwan's aboriginal peoples and with Taiwan on health, cultural and social issues specific to Taiwan's aboriginal population.
Well said Winston!!
Regards
The Hive
Taiwan's Chen Shui-bian: Silly, Silly, Silly Man!
Another attribute which we did not mention in the self analysis below is our strong belief in democracy. In New Zealand's case this manifests itself in a republican tendency and support for MMP which we voted for and still champion.
Our interest in Taiwan, aside from its importance as a trade partner, is in its delivering what Lee Kuan-yew, and multiple Chinese rulers say is impossible in a chinese society - a pure form of democracy. In many ways purer than the New Zealand model. This system saw the KMT hand over power to Chen Shui-bian and the DPP 8 years ago, and yesterday the DPP handed power back to the KMT. These elections have in the most part been orderly, but there is still murk around the election 4 years ago with its dramatic election eve assassination attempt on the incumbent.
Our theory is that the failed assassin was hired by the President to rid him of his crazy Vice President Annette Lu. Unfortunately he wasn't that good a shot, winged the President and only managed to shoot Lu in the leg. Chen got the sympathy vote he wanted but had to suffer loopy Lu for four more years.
The loopiness seems to have rubbed off with Government becoming increasingly more corrupt. Pretty much everyone knew what was going on. The DPP, as a consequence, has suffered humiliating losses in legislative yuan and Presidential elections. Whether it can rebuild is a big question.
Chen Shui-bian should have known better, but there is considerable evidence out there to suggest that he too had his hand in the till. This FT report details how prosecutors have moved in within minutes of the Presidential immunity being lifted. Chen's defence that he used the missing money for secret diplomacy is particularly worrying given recent revelations about the missing $36 million that has been widely reported around the world, including in New Zealand. The DPP's corruption has tarnished Taiwan's democracy. Perversely, it is now up to what was previously the most corrupt party in the world - the KMT - to restore faith in the system.
Our interest in Taiwan, aside from its importance as a trade partner, is in its delivering what Lee Kuan-yew, and multiple Chinese rulers say is impossible in a chinese society - a pure form of democracy. In many ways purer than the New Zealand model. This system saw the KMT hand over power to Chen Shui-bian and the DPP 8 years ago, and yesterday the DPP handed power back to the KMT. These elections have in the most part been orderly, but there is still murk around the election 4 years ago with its dramatic election eve assassination attempt on the incumbent.
Our theory is that the failed assassin was hired by the President to rid him of his crazy Vice President Annette Lu. Unfortunately he wasn't that good a shot, winged the President and only managed to shoot Lu in the leg. Chen got the sympathy vote he wanted but had to suffer loopy Lu for four more years.
The loopiness seems to have rubbed off with Government becoming increasingly more corrupt. Pretty much everyone knew what was going on. The DPP, as a consequence, has suffered humiliating losses in legislative yuan and Presidential elections. Whether it can rebuild is a big question.
Chen Shui-bian should have known better, but there is considerable evidence out there to suggest that he too had his hand in the till. This FT report details how prosecutors have moved in within minutes of the Presidential immunity being lifted. Chen's defence that he used the missing money for secret diplomacy is particularly worrying given recent revelations about the missing $36 million that has been widely reported around the world, including in New Zealand. The DPP's corruption has tarnished Taiwan's democracy. Perversely, it is now up to what was previously the most corrupt party in the world - the KMT - to restore faith in the system.
May 19, 2008
Taiwan's DPP Gets New Head - Thank Goodness
Taiwan's leading opposition party the DPP has had a bad year. It lost the legislature and lost the Presidency, but it itsn't all bad. The party goes into four years of opposition tomorrow with a new leader Tsai Ing-wen. A former Vice Premier, a former Minister responsible for relations with China, and a former Chair of the APEC Group on Services - appointed at the APEC Senior Officials Meeting in Wellington in February 1999 (no China she won't amount to anything) Tsai is something of an enigma. The daughter of a very wealthy establishment family Tsai has spurned the status quo to fight for an independent image for Taiwan. A genuine PhD from London School of Economics in 1984 Tsai had a distinguished academic career before being appointed to various roles in Government under former President Lee Teng-hui. She is the author of the famous "two states doctrine" which really pissed China off a few years back.
Tsai knows New Zealand and many New Zealanders well. She regards Helen Clark as something of a role model. There is genuine affection for Tsai throughout Taiwanese society and we would not rule out her one day becoming President.
Tsai knows New Zealand and many New Zealanders well. She regards Helen Clark as something of a role model. There is genuine affection for Tsai throughout Taiwanese society and we would not rule out her one day becoming President.
Taiwan: New President And Earthquake Combine To Create Immediate Thaw In Relations
Tomorrow will see Ma Ying-jeou sworn in as the next President of the Republic of China. Yet even before he has been sworn in China has indicated that it will host a visit by the Chairman of Ma's Party the Kuomintang (KMT - GMD in pinyin) to China starting May 26. China has also accepted Taiwanese participation in relief efforts related to the Sichuan earthquake (which was widely felt in Taiwan even though it is a huge distance from the epicentre).
An offer of help from Taiwan was one of the first that China accepted after its deadly quake last week. Taiwan's Red Cross has said China agreed to accept a 20-person emergency relief team. Taiwan is also sending a cargo plane with tents and medical supplies.
An offer of help from Taiwan was one of the first that China accepted after its deadly quake last week. Taiwan's Red Cross has said China agreed to accept a 20-person emergency relief team. Taiwan is also sending a cargo plane with tents and medical supplies.
May 2, 2008
No Radical Changes In Taiwan-China Relations
Eyebrows have been raised around the world at the news that Taiwan's incoming President has appointed Lai Shin-yuan as Chair of the Mainland Affairs Council (Minister for relations with China). Lai is a member of the pro-independence Taiwan Solidarity Union and was for some years prior to running for the Taiwan legislature the economic advisor to outgoing President Chen Shui-bian.
This appointment is a smart move by President to be Ma as it will demonstrate that he has no intention of selling Taiwan out to the mainland. No one can accuse Lai of pro-China sentiment!
Lai has also made it clear in her comments that she is willing to improve relations with China, but only in a gradual way.
Lai is a development economist close to New Zealand economist Professor Robert Wade. She sees a role for the state in nurturing industry in a way that we at The Hive do not see as either necessary or sensible. As is clear from this FT article today Lai's development economics past is going to influence the future of Taiwan-China relations.
Aside from Wade, Lai has a number of other close contacts with New Zealand connections. She was very active within in Taiwan's APEC and WTO processes for many years.
This appointment is a smart move by President to be Ma as it will demonstrate that he has no intention of selling Taiwan out to the mainland. No one can accuse Lai of pro-China sentiment!
Lai has also made it clear in her comments that she is willing to improve relations with China, but only in a gradual way.
Lai is a development economist close to New Zealand economist Professor Robert Wade. She sees a role for the state in nurturing industry in a way that we at The Hive do not see as either necessary or sensible. As is clear from this FT article today Lai's development economics past is going to influence the future of Taiwan-China relations.
Aside from Wade, Lai has a number of other close contacts with New Zealand connections. She was very active within in Taiwan's APEC and WTO processes for many years.
Mar 30, 2008
Mar 24, 2008
Mar 23, 2008
Taiwan: Back In KMT Hands
As we predicted, the Chinese Nationalist Party, the KMT, has swept home in the Taiwanese Presidential election 59% to 41%. That seems a pretty strong mandate, and shows how badly Chen Shui-bian and friends screwed things up.
The media will be suggesting tomorrow that this heralds major change in China-Taiwan relations. Don't bank on this.
Ma Ying-jeou will certainly not be pushing for a formal independence from China (being content with the current de facto independence). This might help speed up improved commercial links with the mainland, particularly air and sea links. But China will not be satisfied until Taiwan has returned to the bosom, and Ma can't deliver this. Taiwan will still be seeking its own international identity, will still play games in the Pacific etc. and will still be wanting to buy bigger and better arms systems from the US. And because Ma is likely to be better behaved in US eyes, these sales are more likely to go through. Perversely this might make tensions worse with China at a political level (while making armed confrontation less likely).
Will New Zealand have the courage to issue a statement of welcome to Taiwan's new leader and commendation to Taiwan for holding yet another successful democratic election??
The media will be suggesting tomorrow that this heralds major change in China-Taiwan relations. Don't bank on this.
Ma Ying-jeou will certainly not be pushing for a formal independence from China (being content with the current de facto independence). This might help speed up improved commercial links with the mainland, particularly air and sea links. But China will not be satisfied until Taiwan has returned to the bosom, and Ma can't deliver this. Taiwan will still be seeking its own international identity, will still play games in the Pacific etc. and will still be wanting to buy bigger and better arms systems from the US. And because Ma is likely to be better behaved in US eyes, these sales are more likely to go through. Perversely this might make tensions worse with China at a political level (while making armed confrontation less likely).
Will New Zealand have the courage to issue a statement of welcome to Taiwan's new leader and commendation to Taiwan for holding yet another successful democratic election??
Mar 22, 2008
Could China Have Given The DPP A Victory?
Voting is now well underway in Taiwan in its Presidential election. Until a couple of days ago, a victory by the incumbent pro-independenec Democratic People's Party looked impossible, but the New York Times reports today that the Chinese crackdown in Tibet has changed the dynamic quite significantly.
The suppression of Tibet protests by Chinese security forces, as well as missteps by the Nationalist Party, which Beijing favors, have nearly erased what had seemed like an insuperable lead for Ma Ying-jeou, the Harvard-educated lawyer who has been the front-runner in the race.
For the record The Hive is still expecting a win by the Chinese Nationalist Party (KMT).
The suppression of Tibet protests by Chinese security forces, as well as missteps by the Nationalist Party, which Beijing favors, have nearly erased what had seemed like an insuperable lead for Ma Ying-jeou, the Harvard-educated lawyer who has been the front-runner in the race.
For the record The Hive is still expecting a win by the Chinese Nationalist Party (KMT).
Taiwan Elections Today
With Taiwan going to the polls today we thought that readers might be interested in the front page from today's Taipei Times. We will analyse the results tomorrow. We are anticipating a win for the KMT.
These elections are always tense, both inside Taiwan and for China. Just to make sure all remains stable the US has moved two carrier groups close by.
These elections are always tense, both inside Taiwan and for China. Just to make sure all remains stable the US has moved two carrier groups close by.
Mar 17, 2008
Tibet Crackdown A Shot In The Foot By China
With Taiwan about to go to the polls for its Presidential election, the recent unrest in Tibet could not be more badly timed for China. Even China's friend Ma Ying-jeou is distancing himself from the mainland...
Mar 9, 2008
DPRK Opposes Taiwan UN Bid
This just in on the wire.
While no doubt this statement will help continue the aid flow from Beijing it seems a bit hypocritical to us here at The Hive. UN membership for the DPRK (and ROK) was highly contentious for many years, and was of rather similar to the Taiwan case. Eventually a deal was brokered which saw both Koreas allowed into the UN in the early 1990s (Kim Il Sung reluctantly agreed to join once he was advised by the Chinese that they would no longer be vetoing a request for membership from the ROK).
While we have some sympathy with Taiwan's predicament, that sympathy is tempered by the history of the situation. In the 1960s an opportunity arose to achieve what has happened for the two Koreas. Readers might recall that in the 1960s China was represented in the UN (as a Permanent Member of the Security Council no less) by the ROC based on Taiwan. China (PRC) was not a member of the UN. Overtures were made to China by New Zealand, Canada (and maybe Australia) about the possibility of a package deal - they would become a member of the UN if Taiwan was allowed to remain a member. China in the early 60s (before Mao went really mad and started the Cultural Revolution) appeared interested. Unfortunately for Taiwan, it's leader Chiang Kai-shek was already mad, and he vetoed the idea. The rest is history - China came in during the 1970s and Taiwan was booted out.
While no doubt this statement will help continue the aid flow from Beijing it seems a bit hypocritical to us here at The Hive. UN membership for the DPRK (and ROK) was highly contentious for many years, and was of rather similar to the Taiwan case. Eventually a deal was brokered which saw both Koreas allowed into the UN in the early 1990s (Kim Il Sung reluctantly agreed to join once he was advised by the Chinese that they would no longer be vetoing a request for membership from the ROK).
While we have some sympathy with Taiwan's predicament, that sympathy is tempered by the history of the situation. In the 1960s an opportunity arose to achieve what has happened for the two Koreas. Readers might recall that in the 1960s China was represented in the UN (as a Permanent Member of the Security Council no less) by the ROC based on Taiwan. China (PRC) was not a member of the UN. Overtures were made to China by New Zealand, Canada (and maybe Australia) about the possibility of a package deal - they would become a member of the UN if Taiwan was allowed to remain a member. China in the early 60s (before Mao went really mad and started the Cultural Revolution) appeared interested. Unfortunately for Taiwan, it's leader Chiang Kai-shek was already mad, and he vetoed the idea. The rest is history - China came in during the 1970s and Taiwan was booted out.
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